Question

Write down the structure of capital account.

Answer 1

Capital account consists of three components 

1. Private Capital 

2. Banking Capital 

3. Official Capital

1. Private Capital : Private capital consists of foreign investments, long term loan and foreign currency deposits. 

2. Banking Capital : Banking capital includes movement into external financial asset and liabilities commercial and co – operative banks authorized to dealing in foreign exchange.

3. Official Capital : It includes RBI’s holdings of foreign currency and special drawing rights (SDR) held by the Government.